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PepsiCo
Buys Stake in Burton Snowboards
4/1/99
by Lee Crane
After sponsoring the 1999 US Open with it's hot, extreme
sports soft drink brand, Mountain Dew, PepsiCo's board of directors
has announced a letter of intent to purchase a 80 percent stake
in the Burlington, Vermont based Burton Snowboards. Included in
the deal are Burton's other brands Red, Backhill, and the recently
launched footwear company Gravis.
"This allows us to follow through with our latest consumer marketing
plan to completion," said Franklin Conners, communications director
for the junk food giant. "We've basically been giving Burton free
ads in our "Do The Dew" ads so we might as well profit from both
the soda and the snowboards sales."
Burton employees are excited about the deal because of PepsiCo's
plan to share stock with employees who are willing to stay on with
Burton for at least three years. "We've been working here at Burton
for basically our pay checks and now we finally have the opportunity
to share in the success of our company," said Burton Marketing Director
Davey Shreebler. "Plus, we're each getting $20 a week in coupons
that we can use at Pizza Hut, Kentucky Fried Chicken, or Taco Bell
and that's what I'm most excited about."
As to why Jake Burton Carpenter, Burton's former majority shareholder,
would sell his shares to a major food and beverage company Jake
seems quite clear. "This is the age of consolidation," Carpenter
said. "In the new millennium it's not about niche markets, it's
about global branding and with PepsiCo we're getting a global brand,
an increased retail presence, and an endless supply of potential
tie-in marketing programs. I'm extremely happy with the deal."
No one, however, is more excited about the deal than former McDonald's
marketing intern and current Vice President of Business Developement
at Burton, Dennis Janson. "Working for a snowboard company
has been fun," Janson said. "But getting back in to fast
food is a dream come true. I put hundreds of hours into this deal
because as some of you know, deep down inside I've always been a
greasy, fried-food-eatin', junk dealer."
Burton Snowboards will continue to operate out of its Burlington
Facilities. The only changes planned for this year include drinking
fountains which dispense Mountain Dew, and a newly designed employee
lounge featuring Kentucky Fried Chicken vending machines.
Future plans feature innovative cross promotions such as the Extreme
Burton Burrito Deal Meal, The Kentucky Fried Bucket 'o Boots, and
the all new Cinnamon Crispa core that will be using in the manufacturing
of the FL line of boards.
For more information on the PepsiCo Purchase of Burton please check
the Burton Web site at http://www.burton.com/
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